832.51/1696: Telegram

The Ambassador in Brazil ( Caffery ) to the Secretary of State

32. My 30, January 19, 2 p.m. Souza Costa received my representative privately and explained what he was about to do. He thereafter received the Europeans and handed a statement to each representative which recites that the Government had hoped to make a permanent settlement but now feels compelled to make only a temporary settlement and concludes “I propose since it is not possible to conclude a definite agreement to resume the payment on the foreign debt in April 1940 on the basis of 50% of the obligations assumed under the Aranha plan.” He then stated that the Government intends to avail itself of the provisions of numbered paragraph 6 of article I of the Aranha plan.7a

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Caffery
  1. Decree No. 23829, February 5, 1934, embodying the Aranha Plan; for text, see Diario Oficial, February 7, 1934, p. 2689.